Rates were steady in the past week; however, they started rising again towards the end of the survey period. For the week ending October 4, Freddie Mac announced that 30-year fixed rates decreased slightly to 4.71% from 4.72% the week before. The average for 15-year loans was also down one tick to 4.15% and the average for five-year adjustables increased to 4.01%. A year ago, 30-year fixed rates averaged 3.85%. Attributed to Sam Khater, Chief Economist, Freddie Mac — “Rates on home loans inched back a little in this week’s survey, easing one basis point to 4.71 percent after hitting a seven-year high last week. There is upside risk with regard to rates as the economy remains very robust and this is reflected in the very recent strength in the fixed income and equities markets. However, the strength in the economy has failed to translate to gains in the housing market as higher rates have contributed to the decrease in home purchase applications, which are down from a year ago. With interest rates expected to track higher, it’s going to be a challenge for the housing market to regain momentum.”
Note: Rates indicated do not include fees and points and are provided for evidence of trends only. They should not be used for comparison purposes.